(Reuters) -Levi Strauss & Co forecast full-year sales and profit above Wall Street estimates on Wednesday, encouraged by higher prices and robust demand for the denim maker’s jeans and jackets with more people stepping out of their homes.
Shares in the company, which also topped market expectations for fourth-quarter results, rose about 2% in extended trading.
Easing COVID-19 curbs and a resurgence in retro fashion styles such as high-rise and loose-fitting jeans have lifted demand for Levi denims, as people refresh their wardrobes with casual outdoor clothing after more than a year of staying indoors.
The Denizen brand owner benefited from selling its products at full price and cutting down on promotions with reopening of economies in its European and Asian markets providing a further boost.
Net revenue from the company’s Asia segment were flat in the reported quarter compared to pre-pandemic levels, following a 23% slump reported in the last quarter.
Levi, which has been investing heavily in its direct-to-consumer (DTC) business while also expanding operations at major retailers including Target and Nordstrom, reported a 25% jump in net revenue from its DTC channels.
The Signature and Levi’s 501 jeans maker said it expects revenue between $6.4 billion and $6.5 billion in fiscal year 2022, an 11% to 13% rise, compared with analysts’ estimate of $6.37 billion, according to Refinitiv IBES data.
The San Francisco-based company expects adjusted full-year profit per share between $1.50 and $1.56, compared with estimates of $1.52.
Net revenue rose 22% to $1.69 billion in the reported quarter, edging past analysts’ estimate of $1.68 billion.
Excluding items, Levi earned 41 cents per share, a cent above expectations.
(Reporting by Deborah Sophia in Bengaluru;Editing by Vinay Dwivedi)